The debut episode of Compliance That Works focuses on a topic that directly affects dealership performance, accountability, and risk management. Host Shannon Robertson, executive director of AFIP, sits down with Jim Corchan, vice president of operations at Ramey Ford Princeton in West Virginia, to examine the fundamentals of compliance, how they are applied on the dealership level, and the results a structured compliance strategy can deliver.
“It was kind of eye-opening to find that the team was unaware of all the laws that govern sales and finance, such as OFCAC and red flags…therefore they didn’t know the proper procedures to clear red flags.”
Cochran emphasizes that compliance touches every department, from sales and finance to service, parts, accounting, and HR. Upon stepping into a compliance leadership role, he discovered that many employees were unaware of the laws governing sales and finance and unfamiliar with the penalties for noncompliance. To address this, Cochran developed a structured, step-by-step approach to building effective compliance across the dealership:
- Assess risk across every department
Begin by evaluating how each department operates, including sales, finance, service, parts, accounting, and HR. Identify where compliance risk is the greatest and where penalties are most severe, rather than attempting to address everything at once. - Prioritize high-risk areas first
Focus initial compliance efforts on sales and finance, where transaction speed and regulatory exposure are highest. Use penalty severity and likelihood of errors to determine where compliance must begin. - Educate before enforcing
Ensure employees understand the laws that affect their roles and the consequences of noncompliance. Awareness is the foundation of accountability and prevents resistance rooted in misunderstanding. - Introduce change regularly
Avoid overwhelming teams by implementing compliance requirements in phases. Start with the most critical items, confirm understanding and consistency, then introduce additional requirements over time. - Train while building processes
Provide training alongside implementation so employees know not only what is required but why. Reinforce how compliance protects both the employee and the dealership. - Document expectations
Create a formal compliance and process manual that clearly outlines procedures and standards. Written guidance ensures consistency and eliminates confusion about expectations. - Define accountability standards
Make it clear that employees will be held accountable only after expectations are documented, explained, and trained. Accountability follows clarity, not surprise enforcement. - Secure management buy-in
Identify leaders on the floor who can support compliance daily. Align managers with compliance goals so standards are reinforced at the deal level, not just through oversight. - Place leaders where they can succeed
Evaluate team members based on leadership ability and willingness to learn rather than tenure alone. Position managers where they can effectively lead and influence compliance culture. - Reinforce compliance daily
Hold regular meetings to review processes, address questions, and close gaps. Ongoing communication keeps compliance integrated into daily operations rather than treated as a separate task. - Address resistance directly
Give employees the opportunity to adapt to new standards. If resistance continues after education and clarity, allow natural turnover to reinforce expectations and protect the dealership. - Measure success through risk reduction
Evaluate compliance success by fewer errors, faster funding, reduced chargebacks, and improved customer experience, not just sales volumes. - Treat compliance as culture
Embed compliance into how the dealership operates every day. When compliance becomes routine, it supports profitability, efficiency, and long-term stability.
Cochran concludes with the notion that compliance works best when it becomes a natural part of dealership operations rather than an added burden. By focusing on education, phased implementation, and accountability at every level, dealerships can make compliance manageable while strengthening both effectiveness and long-term performance.
